How AI Influenced Black Friday & Cyber Monday

For decades now, Black Friday has been the biggest holiday shopping day of the year in the United States, though Cyber Monday is steadily closing in terms of volume. In fact, despite many anticipating that inventory levels would be a problem going into the Holidays, Cyber Monday 2022 ultimately broke records, generating $11.3 billion in online sales. Whether consumers were buying online or in-person this year, technology undoubtedly played a vital role in these sales. AI in particular has transformed the holiday buying season, helping retailers manage inventory, personalize advertising campaigns, and drive engagement.

The first and most obvious way that AI and big data have changed Black Friday and Cyber Monday is that it provides retailers with a more in-depth understanding of their customers. Traditionally, retailers would use Black Friday as a means of shifting stock that hadn’t sold during the year, at a reduced price. This is still the case, but now retailers have access to a vast amount of consumer data, allowing them to more accurately predict what people will spend their money on. This means that pricing, inventory, and distribution can be managed more efficiently, resulting in lower prices for consumers and higher profits for retailers.

Of course, retailers have been using a variety of tools to predict consumer behavior over the years, but this isn’t the only benefit that AI technology offers. Along with predicting what customers might buy next, AI also allows retailers to personalize their services to each customer’s specific needs. In the past, consumers would have to hunt to find a good deal, planning their Black Friday based on where they thought they would find the best offers. Nowadays, retailers are using machine learning and automation to bring offers directly to customers, creating messaging and unique deals for each specific consumer. Personalized recommendations chosen by AI are uniquely persuasive, with everything from Amazon purchases to Netflix views being heavily influenced by algorithms. This heavily personalized approach is not only the best way to increase sales (whether over the Holidays or throughout the year), but it also helps to increase customer retention in the long term.

Beyond Black Friday and Cyber Monday, commerce is becoming an increasingly digital pursuit, with more and more data being generated with every single purchase. All of this data can help retailers identify potential customers, optimize brand strategies, and the best possible service. However, the sheer flood of information available would be completely unmanageable without AI technologies to streamline the process. Best of all, as these technologies continue to evolve and mature, retailers and marketers will have even new opportunities to innovate and connect with customers.